LA PUENTE ASKS VOTERS TO PREPARE FOR LEGALIZED MARIJUANA

LA PUENTE - Although it enacted a ban on marijuana dispensaries at the
beginning of the year, the city is taking steps to prepare for a more
pot-friendly future.

La Puente is one of a few cities statewide with ballot measures to tax
marijuana sales should Proposition 19 pass on Tuesday.

Measure M would establish a new category of business licenses,
"cannabis business," that would take effect if voters approve the
Regulate, Control and Tax Cannabis Act of 2010.

Taxes would be levied at a rate of 10 percent per $1,000 of gross
receipts, which could bring La Puente about $2 million to $3 million
each year in general funds.

"That would be a huge increase for us to provide services to our
community and to stop cutting services," said Mayor David Argudo, who
filed the argument in favor of Measure M.

La Puente's second item on the ballot, Measure N, establishes a tax on
medical marijuana cooperatives - the same dispensaries La Puente has
ordered to shut down.

The 10 dispensaries in the city face a closure date of Feb. 2, but
Argudo expects they could remain open up to four years because of
appeals and lawsuits.

"They're generating sales, but at a local level we're not taxing
them," Argudo said. "We have an opportunity to tax them to offset any
secondary negative impacts that might come along with those
dispensaries."

The city hasn't received any arguments opposing the measures, but
there is some carry over from the Prop. 19 crossfire.

Part of the criticism levied by the No on Proposition 19 campaign is
that cities won't actually get any tax money from pot sales because
the initiative doesn't establish a statewide standard.

"Having a patchwork of rules and regulations will only serve to
confuse the issue," spokesman Roger Salazar said.

But if Prop. 19 and La Puente's measures pass, the city would be in
position to collect taxes right away, according to Argudo.

"Those doors are already in place, so the transition would be easier,"
he said.

Argudo added that it's possible the city could revisit its ban on pot
dispensaries if voters legalize marijuana, and the current collectives
might simply be allowed to operate without a medical
requirement.

One other organization has weighed in on the issue. The Los Angeles
County Democratic Party recommends voting no Measure M and N, as well
as a similar measure in Long Beach, despite endorsing Prop. 19.

Party representatives didn't return calls to explain their position.